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Alpha Rules Strategy used by Famous Twitter Trader from South India for Bank Nifty Options
According to the Famous Trader the common 9.20 Straddle has various disadvantages like Fixed Entry and Exit, Fixed SL, No adjustments etc and therefore he has tweaked certain parameters of entry and exit for each day.
Entry Rules – One has to enter into ATM straddles at 2 different times during the day and the timings are different for each day during the week
Exit Rules – Either the SL for each legs Hits or we wait till 3.25 PM
| Monday Rules* | ||
| Details | 1st Entry | 2nd Entry |
| Entry | 9.21 am | 12.30 pm |
| Exit | 3.25 pm | 3.25 pm |
| Stop Loss % | 30% | 50% |
| Win Ratio | 74% | 77% |
| Move your SL | No | No |
| Tuesday Rules* | ||
| Details | 1st Entry | 2nd Entry |
| Entry | 9.21 am | 12.30 pm |
| Exit | 3.25 pm | 3.25 pm |
| Stop Loss % | 40% | 25% |
| Win Ratio | 70% | 70% |
| Move your SL | No | Yes |
*You should do the Strategy Backtest before implementing in the live market or atleast do Paper Trading for a month and then deploy.
| Wednesday Rules* | ||
| Details | 1st Entry | 2nd Entry |
| Entry | 9.46 am | 1.00 pm |
| Exit | 3.25 pm | 3.25 pm |
| Stop Loss % | 40% | 40% |
| Win Ratio | 70% | 70% |
| Move your SL | Yes | Yes |
| Thursday Rules* | ||
| Details | 1st Entry | 2nd Entry |
| Entry | 9.55 am | 1.00 pm |
| Exit | 3.25 pm | 3.25 pm |
| Stop Loss % | 40% | 70% |
| Win Ratio | 79% | 78% |
| Move your SL | No | No |
*You should do the Strategy Backtest before implementing in the live market or atleast do Paper Trading for a month and then deploy.
*If you get better backtest results then you can modify certain parameters also and trade accordingly for better profits.
| Friday Rules – Nifty* | ||
| Details | 1st Entry | 2nd Entry |
| Entry | 9.45 am | 12.30 pm |
| Exit | 3.25 pm | 3.25 pm |
| Stop Loss % | 20% | 25% |
| Win Ratio | 72% | 72% |
| Move your SL | No | No |
*You should do the Strategy Backtest before implementing in the live market or atleast do Paper Trading for a month and then deploy.
*If you get better backtest results then you can modify certain parameters also and trade accordingly for better profits.
Key Points of the above Strategy
- Everyday different timings and SL% protects us from Stop loss Hunting
- Friday trading in Nifty is giving us Hedge against the Banknifty Trading because Banknifty is mostly trending on Fridays
- If One side SL gets hit we can still be profitable as the other side will cover up for the loss and the position will become Directional
Do check out Short Straddle Algo Now
*Kindly Note – We, at Just Algo believe, Anything above 4-5% returns per month is an excellent expectation for a long term intraday trader in options selling
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